The number of Americans who filed for new claims for jobless benefits fell for a third week in a row last week. This was the latest sign that the labor market was improving. The cost of gasoline went up and resulted to the increase of producer prices in February. But even with the improvement of the jobs markets, the Federal Reserve will still maintain its easy money policy due to the lack of broad price pressures. 
The jobless claims report, along with other data from manufacturing, employment and retail sales, indicated that the higher taxes didn’t impact the economy that much. Job growth has improved in 2013 despite several fiscal tightening made by the private sector and government.
The initial claims for state jobless benefits fell 10,000 to a seasonally adjusted 332,000 last week, according to the Labor Department. Economists surveyed by Reuters estimated first time applications for unemployment aid to increase to 350,000.
Policymakers are scheduled to meet next week to assess the economy. They are expected to keep buying $85 billion in bonds a month to boost the economic growth. The Fed said in the past that it would keep with its asset purchases until a substantial improvement is seen in the labor market.
Employment growth improved in recent months. There is a decrease in the number of layoffs and at the same time an increase in hiring. Last month, nonfarm payrolls gained by 236,000 but economists said it is not enough to make the Fed to stop its stimulus program.
